France says it opposes GE’s bid for Alstom unit

The French government formally declares its opposition to GE’s (GE -0.4%) friendly $13.5B offer for Alstom's (ALSMY, AOMFF) energy assets, saying in a letter to GE that the deal should be reconfigured on a more equitable footing.

The government’s legal means for stopping a deal appears limited, though it could refuse to approve such an investment on national security grounds; economy minister Montebourg notes in his letter that the government was Alstom’s most important customer.

Alstom’s energy units, which make turbines for nuclear, coal and gas power plants, as well as the grid infrastructure to deliver electricity, contribute ~75% of its €20B (~$30B) in the company’s annual sales.

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Comments (26)
  • JMReno
    , contributor
    Comments (86) | Send Message
    Since when did this potential GE/Alstom deal morph into a platform for expressing one's liberal views on Obamacare? Perhaps we can use Obamacare as a springboard to French-like 15% unemployment, 50% income tax rates, 35 hour work weeks, low productivity, and all of the other well documented Nanny state attributes. I fail to see how this has anything to do with the GE/Alstom deal however.
    5 May 2014, 03:27 PM Reply Like
  • kata
    , contributor
    Comments (1533) | Send Message
    That's now a 75% income tax rate, not including the VAT. And no, not surprised at all.
    5 May 2014, 09:03 PM Reply Like
  • sami12159
    , contributor
    Comments (29) | Send Message
    ECPH keep to the subject which is GE purchase of certain assets from Alstrum not yoiur liberal ideas about Obamacare which is a total mess. If the French government is against the deal it is probably dead. The French government is ultra liberal with a beer pocketbook.
    5 May 2014, 03:36 PM Reply Like
  • WisPokerGuy
    , contributor
    Comments (1403) | Send Message
    Advice to GE --- move on to the next idea. Price chasing here would be a horrible idea. Leave French companies to "suck the government tit" until there is nothing left. That always works out well for the businesses involved. LOL
    5 May 2014, 03:43 PM Reply Like
  • JMReno
    , contributor
    Comments (86) | Send Message
    Great advice!
    5 May 2014, 04:59 PM Reply Like
  • A Newell
    , contributor
    Comments (508) | Send Message
    Walk away, we don't want this "crap" company anyway and we surely don't want to be stuck with some "French poodle". Walk away and be happy.
    5 May 2014, 04:23 PM Reply Like
  • trinitybennetts
    , contributor
    Comments (59) | Send Message
    Last time I checked on it France was bailed out by Yankee ingenuity after being invaded by a neighbor twice. Now they don't want to deal with us. Think it over folks. Big mistake.
    5 May 2014, 04:39 PM Reply Like
  • anarchist
    , contributor
    Comments (2006) | Send Message
    trinitybennetts keep to the subject which is GE purchase of certain assets from Alstrum not your Conservative version of World Wars.
    5 May 2014, 08:19 PM Reply Like
  • ads7w6
    , contributor
    Comments (44) | Send Message
    His views on WWII are irrelevant to the discussion of the proposed deal and should be left out of it. But, you making it a Conservative/Liberal issue also adds nothing to the conversation so please take your own advice to try and stay to the subject.
    6 May 2014, 09:34 AM Reply Like
  • Albert Alfonso
    , contributor
    Comments (3295) | Send Message
    This news should surprise absolutely nobody.
    5 May 2014, 04:51 PM Reply Like
  • FinancialDave
    , contributor
    Comments (2312) | Send Message
    I agree. I'm not surprised at all.
    5 May 2014, 10:16 PM Reply Like
  • Harry Polizzi
    , contributor
    Comments (694) | Send Message
    A failure of this deal is the best thing that could happen to GE & its stockholders. There's NO company in France run by French leadership & staffed by lazy french works that is worth a red penny.


    5 May 2014, 04:53 PM Reply Like
  • vanderster17
    , contributor
    Comments (3) | Send Message
    GE should go ahead with this deal. If you can shout hard enough it will work. Usually there is another way by providing mistresses to the government ministers and the deal will get through. After all how else can you make a deal with the French government leaders.
    5 May 2014, 04:54 PM Reply Like
  • Nettligent
    , contributor
    Comments (1346) | Send Message
    You can take the mule to water, but we cannot make the mule drinks.
    6 May 2014, 01:03 AM Reply Like
  • AndyG47
    , contributor
    Comments (2) | Send Message
    Sad demise for this potentially groundbreaking deal is now on our horizon. The price offered is more than fair for the tangible assets and market perpetration acquired.
    If GE is not welcomed by the French government, then the business deal at any price is a bad value proposition.
    5 May 2014, 06:30 PM Reply Like
  • Hlog160
    , contributor
    Comments (14) | Send Message
    As very long stockholder I would say, leave France to struggle with their companies. Have you ever traveled in France they are the rudest people in Europe (other than Russia). They seem to have forgotten who saved them about 70 yrs. ago.
    5 May 2014, 06:34 PM Reply Like
  • WisPokerGuy
    , contributor
    Comments (1403) | Send Message
    I'm not a fan of the French system either, but maybe the people in France think we owed them one 70 years ago for what France did for us in basically making the difference between our winning and losing the Revolutionary War?


    Obviously this discussion is ridiculous. Bashing France continually on what the USA did in WW2 is pointless. Anybody who knows anything about history knows it was completely in the United States' interest to defeat Germany. The fact that France was liberated was an extra bonus. Time to let that go. It's irrelevant. It's the 21st Century for god's sake!!!
    5 May 2014, 09:24 PM Reply Like
  • TGP59
    , contributor
    Comments (71) | Send Message
    Just as it was completely in France's best interests to help the colonists defeat Britain in the Revolutionary War...even though for the most part they arrived pretty late. The enemy of my enemy is my friend, right? A lot of Americans lost there lives in France WisPokerGuy, fighting against a tyranny that was quickly overtaking the entire European continent. Bottom line is that if Hitler hadn't made the mistake of invading Russia, forcing Stalin's fence sitting hand while spreading his army thin, we might be having a completely different, less free type of conversation.
    5 May 2014, 10:31 PM Reply Like
  • aaron rodgers
    , contributor
    Comments (33) | Send Message
    ecph, ,I hope you are packing your bags for a move to Paris. You will fit right in.
    5 May 2014, 06:48 PM Reply Like
  • minecanary
    , contributor
    Comments (1360) | Send Message
    I think the bottom line is that GE is too pink slip friendly for the Frenchies to stomach
    5 May 2014, 09:22 PM Reply Like
  • U2A Ventures
    , contributor
    Comments (357) | Send Message
    cut bait and get out
    5 May 2014, 10:28 PM Reply Like
  • deodie
    , contributor
    Comments (22) | Send Message
    My suggestion-move to France and your political agenda to another forum.
    6 May 2014, 12:23 AM Reply Like
  • Nettligent
    , contributor
    Comments (1346) | Send Message
    GE should politely thank French government for their consideration and guidance, walk away, and never look back.
    6 May 2014, 01:02 AM Reply Like
  • Nettligent
    , contributor
    Comments (1346) | Send Message
    One more thing: send sincere "Thank you note" to Alstom shareholders, employees, and management for all beautiful memory.
    6 May 2014, 01:06 AM Reply Like
  • satyr
    , contributor
    Comments (1772) | Send Message
    Rather than walk, GE would do best to let Siemens submit their offer. The agreement they have with Alstrom is that if the deal does not go through with GE because they take another offer, then GE gets a fee equal to 1% or 2% (can't remember which) of the winning deal. If the French want to posture and pretend that they are supportive of an inferior Siemens arrangement, call the bluff and walk away with a big paycheck.
    6 May 2014, 01:57 AM Reply Like
  • Marcelobozo
    , contributor
    Comments (21) | Send Message
    If the alternative bid from Siemens is to the french preference then they will face tremendous reduction in employment because Siemens energy products are very similar to Alstom i.e. steam turbines, HV transmission, hydro turbines etc. The germans would never give up their production facilities in Germany to that of France, England, and others outside of Germany.
    6 May 2014, 07:27 AM Reply Like
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